Shariah compliant financing, based on Commodity Murabaha.
Down payment
The customer is not required to pay a down payment in cash. The land value will be considered as down payment.
Financing amount will be 90% of the land value + future construction value (for first house).
REDF Coverage
REDF will cover profit portion of the finance up to a maximum finance amount of 500,000 through Madoom Program.
Takaful Life Insurance
Free Takaful life coverage against death or permanent disability, God forbid, without any medical test for finance up to 2,500,000.
Property Insurance
Free Takaful Property coverage against fire and natural disasters such as floods, storms, earthquakes and resulting damages.
Debt Burden
Maximum debt burden ratio (DBR) is 65% out of the gross income.
Disbursement Schedule
Disbursement Schedule as follows: 15% upon commencement of construction, and subsequently 25%, 25%, 35% (provided that construction should be completed within of 36 months of financing disbursal).
Self-Construction Financing is a product of SAIB in collaboration with REDF, which allows customers to get financing against their owned residential land to fund the construction of their home. Customers can also avail the benefits offered by REDF under Madoom Program with this product. Customers can get financing from the Bank, which will be paid to them in tranches, based on the construction progress.
Payment period
Finance amount
ELIGIBILITY CRITERIA
- For Saudi nationals only
- Age of Applicant: Minimum age is 20 years and maximum age at maturity is 70 years
- Applicant must be listed on the REDF’s and Ministry of Housing’s finance lists
- Applicant must open an Account with SAIB and assign salary
- If the amount of first tranche of 15% is higher than the land value, the lesser amount will be taken.
- Employment: Retirees and employees of government, semi-government, military and private sectors (Bank’s approved list of companies)
- Service period:
For Government Sector: 1 month with current employer
For Private Sector: 3 months with current employer
REQUIRED DOCUMENTS
- Filled finance application form
- Copy of National ID
- Introduction letter from customer’s employer
- Construction plan
- Copy of land title deed
- Salary transfer letter
- Account statement of the last 3 months showing last 3 salaries, verified from the previous bank
- Copy of the “Work ID Card” specifying rank/position (to be taken post sighting of the original), if any
CHARGES AND MINIMUM REQUIRED BALANCE
Standard SAIB loan administration fees. (1% of the finance amount up to a maximum 5000) will apply.
The SAIB Self Construction Finance facility comes with a complimentary salary account with no minimum balance requirements. The account also offers free cheque-book, mada Debit Card from The Saudi Investment Bank and access to SAIB Flexx Click Internet Banking, Flexx Call contact center and SMS Banking facilities..
SERVICE STANDARDS
- Approval in principle within 24 hours (subject to complete documentation)
- Completion of final approval and all related procedures within 12 working days provided all required documents are submitted on time.
An example of information that will be obtained when applying for a product
| Property evaluation ( ) | 500,000 |
| LTV % | 90 |
| Type of term cost | Fixed |
| APR % | 7.40 |
| Finance Tenor (Years) | 15 |
| Payment method | Monthly deduction from customer's salary |
| Monthly Installment Amount ( ) | 4,037.18 |
| Early settlement amount | 1-2 Years: Total profit amount of the 1st two years After 2 years: profits of the three subsequent installments |
*The Annual Percentage Rate (APR) may differ based on the amount and maturity period.
or visit your nearest SAIB Branch.
All personal financings are subject to credit approval.
Product Risks
To view the Home Finance product risks, click here
Am I required to open a salary account and transfer my salary to avail of this product?
Yes, salary transfer to SAIB is mandatory in order to obtain any of SAIB home finance products.
Do I need to mortgage my land to the Bank?
Yes, the land owned by you has to be mortgaged to the Bank in order to avail financing.
Is this finance available for expats, too?
No, this product is only for eligible Saudi nationals listed on the REDF’s and Ministry of Housing’s finance lists
If I am not listed on the REDF’s and Ministry of Housing’s finance lists, can I obtain this product?
No, only those who are listed in REDF’s and Ministry of Housing’s finance lists can get this product. If you are not eligible to get this product, you may apply for SAIB Murabaha Home Finance instead. To learn about Murabaha Home Finance, please click here.
Is this product Shariah-compliant?
Yes, this product is Sharia-compliant and based on Murabaha principle.
What is the maximum amount I can receive as subsidy from REDF and the Ministry of Housing under Madoom Program?
The maximum finance amount is 7,000,000.
What is the maximum finance amount?
The maximum finance amount is 5,000,000.
What is the administration fee amount?
1% of the finance amount up to 5,000 (whichever is lower).
What is the minimum length of service?
The minimum service period:
For Government Sector: 1 month with current employer
For Private Sector: 3 months with current employer
Is joint finance eligible?
Joint finance is not eligible as per REDF’s criteria.
Can I make an early settlement of the finance amount with the Bank?
Yes, you can, provided that you meet the Bank’s terms and conditions (To learn more about these terms, please call us at 800 124 8000).
How can I apply for this finance?
Please click here or contact our Flexx Call contact center at 800 124 8000 .
